U.S. biopharma company Provention Bio, Inc. has secured a term loan facility of up to $125 million with Hercules Capital, Inc. ahead of the company’s potential launch of teplizumab.
The BLA for teplizumab, Provention Bio’s lead investigational drug candidate, for the delay of progression to stage 3 clinical type 1 diabetes in at-risk individuals has been filed by the FDA.
The company’s pipeline includes additional clinical-stage product candidates that have demonstrated in pre-clinical or clinical studies proof-of-mechanism and/or proof-of-concept in other autoimmune diseases, including celiac disease and lupus.
“This term loan facility significantly strengthens our balance sheet ahead of teplizumab’s potential commercial launch and provides the company with additional financial flexibility as we continue to work to change the landscape for patients with type 1 diabetes,” said Thierry Chauche, chief financial officer of Provention Bio.
“Hercules is proud to partner with Provention Bio ahead of the potential approval and commercial launch of teplizumab,” said Bryan Jadot, senior managing director and life sciences group head at Hercules Capital.
“This substantial capital commitment from Hercules aims to help Provention Bio deliver on their important mission to improve the lives of people at risk for type 1 diabetes.”
The term loan facility provides for up to $125 million of term loans in the aggregate, available to be funded in up to five tranches. The first tranche in an amount equal to $25 million was drawn at closing.
The company may draw the second tranche in an amount equal to $40 million upon approval of teplizumab, subject to certain conditions. The third and fourth tranches will be available in an aggregate amount of up to $35 million, subject to satisfaction of certain conditions, including achievement of certain milestones. The availability of the fifth tranche of up to $25 million is subject to the approval of the lenders.